Court deems Apple's conduct as a covert concealment in a significant win for Epic, potentially bringing Fortnite back to iOS devices soon.

Court deems Apple's conduct as a covert concealment in a significant win for Epic, potentially bringing Fortnite back to iOS devices soon.

Tim Sweeney, Epic Games CEO, might not have gotten everything he originally wanted from his battle against iOS app store fees, but he scored a massive victory. A US court has slammed Apple for violating a 2021 injunction, even referring the iPhone maker's behavior to criminal prosecutors.

Initially, Epic prompted a war with Apple, intending to use its own payment processing system in Fortnite on iOS, avoiding Apple's 30% fee. Epic lost that fight in a 2021 trial, but the US courts backed Epic on one point: Apple was forbidden from preventing iOS app developers from directing users to out-of-app websites that use their own payment processors.

Since then, Sweeney has lamented that Apple has not fully complied with the court's wishes, and after scrutinizing the proof, the court has sided with Sweeney.

Today's order from Judge Yvonne Gonzalez Rogers states, "Apple's response to the Injunction strains credulity." According to the order, Apple, despite knowing its obligations, sabotaged the Injunction's objectives, continuing anticompetitive behavior to preserve its revenue stream.

"We vehemently oppose the decision," Apple declared in response to a PC Gamer request for comment. "We will comply with the court's order and we will appeal."

Rather than merely permitting developers to link to out-of-app payment systems in line with the original injunction, Apple introduced a 27% commission on those out-of-app payments. Apple also added "scare" screens that seemed to discourage users from out-of-app purchases, a concern Sweeney has echoed regarding Apple's compliance with a related European law.

Epic never thought Apple was truly adhering to the injunction, leading to an evidentiary hearing in 2024 to investigate the matter. According to today's order, the court became suspicious that Apple was not entirely truthful about the creation of that 27% fee, instructing it to produce documents related to its injunction compliance planning. Apple delayed, but a second hearing occurred earlier this year, and the court was not impressed.

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"Remarkably, Apple believed that this Court would not see through its obvious cover-up" in 2024's hearing, wrote the district judge, who also stated that Apple VP of finance Alex Roman "outright lied under oath." Judge Rogers has referred this matter to the regional US attorneys office "to investigate whether criminal contempt proceedings are appropriate."

Roman's testimony was "filled with deception and outright lies," said the judge. For instance, he testified that Apple had not considered the external payment processing costs developers would also be bearing when it came up with its 27% commission for out-of-app purchases. Evidence presented in court demonstrated that Apple was aware of these costs, "which handily surpassed the 3% discount Apple ultimately decided to offer by a safe margin."

Additionally, the fee itself was in violation of the injunction. According to the court, Apple executive Phil Schiller understood this and opposed the fee, but "Tim Cook disregarded Schiller and instead permitted Chief Financial Officer Luca Maestri and his finance team to persuade him otherwise."

"Cook made a mistake," wrote the judge.

Following today's order, Apple will have no more leeway unless it wins its appeal: There will be no more fees for out-of-app iOS purchases in the US, not just for Epic, but for any developer.

"This is an injunction, not a negotiation," reads the order. "There are no second chances once a party disregards a court order. Time is essential. The Court will not tolerate delays. As previously ordered, Apple will not stifle competition. The Court prohibits Apple from implementing its new anticompetitive actions to evade compliance with the Injunction. Effective immediately, Apple will stop impeding developers' ability to communicate with users, nor will they levy or enforce a new commission on out-of-app purchases."

Starting next week, Epic plans to bring back Fortnite to the US iOS App Store. Sweeney shows readiness for peace.

"We will return Fortnite to the US iOS App Store next week," Sweeney tweeted today. "Epic puts forth a peace proposal: If Apple extends the court's friction-free, Apple-tax-free framework worldwide, we'll bring Fortnite back to the App Store worldwide and dismiss current and future litigation on the topic."

Tyler WildeHailing from Silicon Valley during the '80s and '90s, Tyler grew up playing games like Zork and Arkanoid on early PCs. Enthralled by Myst, SimCity, Civilization, Command & Conquer, all the shooters they now call "boomer shooters," and PS1 classic Bushido Blade (yes, he had Bleem!), Tyler joined PC Gamer in 2011, where he focuses his energies on news coverage. Outside of work, Tyler indulges in amateur boxing and adding to his 1,200-plus hours in Rocket League.

Relevant Enrichment Data:

• Epic Games and Apple are in a dispute over iOS app store payments.
• Epic Games wants to use its own payment processing system in Fortnite on iOS, bypassing Apple's 30% fee.
• Epic Games lost its battle for using its own payment processing system in Fortnite on iOS in a 2021 trial, but won a point that Apple cannot prevent developers from directing users to out-of-app websites that use their own payment processors.
• US courts have accused Apple of willfully ignoring court orders, sabotaging the Injunction's objectives, and continuing anticompetitive behavior to maintain its revenue stream.
• Judge Yvonne Gonzalez Rogers has referred the case to federal prosecutors for possible criminal contempt due to alleged lying under oath by Apple executives.
• Arnie Schwarzenegger and Tim Cook have been mentioned in this legal battle. Arnie Schwarzenegger posted a humorous Twitter thread commenting on the situation.
• Apple has added a 27% commission on out-of-app purchases, prompting criticism from developers and consumers alike.
• Apple has created "scare" screens supposedly discouraging users from out-of-app purchases, which violate privacy regulations in Europe.

1. Tim Sweeney, CEO of Epic Games, secured a significant victory against Apple as the US court ruled that Apple had violated a 2021 injunction.
2. In response to the ruling, Apple acknowledged its noncompliance, stating it would comply with the court's order but intend to appeal the decision.
3. Instead of simply allowing developers to link to out-of-app payment systems as per the original injunction, Apple introduced a 27% commission on those purchases and created "scare" screens intended to dissuade users from out-of-app purchases.
4. During an evidentiary hearing in 2024, the court found Apple's actions to be deceptive, referring the matter to the regional US attorneys office for potential criminal contempt proceedings.
5. Apple VP of finance, Alex Roman, was accused of lying under oath during the hearing while testifying about the 27% commission on out-of-app purchases, and Judge Yvonne Gonzalez Rogers stated that Roman's testimony was filled with deception and outright lies.
6. In her order, Judge Gonzalez Rogers noted that Apple was aware of the external payment processing costs developers would bear but failed to consider them when determining the 27% commission.
7. Following the order, Apple will no longer levy any fees for out-of-app iOS purchases in the US, and will stop impeding developers' ability to communicate with users or enforce a new commission on such transactions.

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